Australian business lending jumps in November
Commitments have been rising since September.
The value of Australian commercial finance commitments rose in November, together with revolving credit.
The Australian Bureau of Statistics (ABS) released its latest lending finance data, revealing a 3.7% month-on-month hike in total commercial commitments.
Commitments have been gaining strength since September, following nine consecutive months of falls.
Prior to this, commitments had not risen since November 2015, as can be seen in the infographic below.
Revolving credit commitments also jumped up in November, 3% higher month-on-month.
Revolving loan facilities allow businesses to borrow money as needed to fund working capital needs and maintain operations. Drawing against the loan brings down the available balance, whereas making payments on the debt brings up the available balance.
Fixed lending commitments in December also gained steam, up 3.9% month-on-month.
The value of housing finance for owner occupation remained flat in December, while personal finance (0.1%) rose modestly and lease finance rose slightly (0.2%).
While a boost in business lending is good news, new research highlights the growing concerns among Australian businesses with regards to rising energy prices.
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